The cost of construction materials has been rising so quickly that it's "difficult to raise prices fast enough," Mohawk Industries Chairman and CEO Jeffrey Lorberbaum told CNBC on Wednesday.
That's squeezing margins on some of the company's commodity-sensitive flooring lines, he said in a "Squawk Box" interview from Las Vegas, where his company was showing off its products at the Home Depot managers and vendors meeting.
The Associated General Contractors of America trade group said producer prices for construction rose 0.6 percent in January, with gypsum up 7.4 percent and lumber up 2.4 percent.
As for housing overall, the recovery is in the "third inning," Lorberbaum said, with new homes and the commercial side leading the way. "The thing that lagged was the remodeling part of the business, which is unusual for coming out of recessions. It's usually the other way around." He added that remodeling looks to be picking up.
Sitting alongside Lorberbaum, Masco CEO Keith Allman agreed—saying that tough winters like this year usually lead to better-than- normal spring seasons.